International Family Day 2025 has reminded us again of the importance of financial security for our loved ones. For single-income families, especially those with children, thoughtful tax planning can make a significant difference in easing the financial burden while ensuring a secure future. Here are some ways in which you can make every rupee count.
A strong tax-saving strategy starts with intelligent investments. At least 20% of your annual income should go into market-linked instruments that offer EEE (Exempt-Exempt-Exempt) benefits. These include Unit Linked Insurance Plans (ULIPs), Equity Linked Savings Schemes (ELSS), and Child Plans. These will also help grow your money over time for important milestones like your child’s education or marriage.
Use Section 80C to its full potential by investing up to ₹1.5 lakh in eligible instruments like Public Provident Fund (PPF), life insurance premiums, and tuition fees for your children. Also, if you’re paying interest on an education loan for your child’s higher studies, remember that Section 80E allows full deduction on the interest component with no cap.
Health expenses are another key area for savings. Section 80D lets you save up to ₹1 lakh by claiming premiums paid for health insurance for yourself, spouse, and children. Buying a mediclaim policy not only provides financial protection in emergencies but also reduces your tax burden.
A term insurance cover equivalent to 15–20 times your annual income ensures your family’s financial safety in your absence. Additionally, allocate at least 10% of your income to retirement plans like the National Pension Scheme (NPS). Contributions here qualify for deductions under Section 80CCD(1B), giving you an additional benefit of up to ₹50,000.
If you own a home or plan to buy one, remember that interest payments on home loans can help you save up to ₹4 lakh in taxes. However, the deductions apply only to the share of the loan paid by each spouse.
This International Family Day 2025, take a step toward building a secure financial future for your family. With strategic tax planning and disciplined investments, even a single income can support big dreams.
Read more on: ITR Filing FY25: Are ESOPs Taxable?
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.
Published on: May 15, 2025, 11:57 AM IST
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